Wednesday, November 4, 2009

PFB Corp 2

I am continuing my review this stock (TSX- PFB) today as I just read an article on this stock and thought I would do a spreadsheet on it. The article thought it was a good time to buy this stock. This company just announced their third quarterly results today. Earnings are up and sales were down. They declared the last dividend for the year at the current dividend rate of $.06. Detailed financial statements were not posted, so I cannot updated my spreadsheet for this third quarter.

When I looked at the report on Insider Buying and Insider Selling, I find that there is much more selling. One Director has sold has sold just over $363,000 of this stock. However, he still controls over $3.6M of these shares. It is not much a concern when only one insider sells. They could be selling for lots of reasons.

I next want to look at the spreadsheet ratios. This price of this stock has gone up over 1% since yesterday. Yesterday it was $6.33 and today it is $6.40. The P/E is still under 12 and this is not bad. The 5 year low P/E for this stock is 13.5. The Price/Book value is just only 80% of the 10 year average, so this points to a relatively good price. The current yield at 3.8% is higher than the 5 year average of 2.8%. This also point to a relatively good price.

The last thing to look at concerning current price is the Graham Price. The currently stock price of $6.40 is some 28% lower than the 2009 Graham price estimate of $8.95. The thing is that this is based on the estimated earnings for this stock in 2009. The Graham Price was unusually low at the end of 2008 because of the low earnings of 2008. Earnings for 2009 is expected to be substantially higher than 2008. The last good thing to mention is that for the 2nd quarterly report the accrual ratio has turn negative. It is now -3%.

I can only find one analyst that follows this stock. The recommendation on this stock was recently changed from a Hold rating to a Buy rating. . (See my site for information on analyst ratings.) This is a small cap stock, so it is not surprising that few analysts follow it.

If you look at the charts, this stock has recently shot up in price from $3.81 in September 2009 to $6.40 today. Because of this, PFB stock has done better than the TSX and Industrials Indexes over the short term and as well as these indexes over the long term. It is interesting that the price of this stock has so recently done well. It was in the $3.00 and $4.00 range from November 2008 to this September.

As I said yesterday, I will continue to track this stock, but I do not intend to purchase it at this time.

PFB Corporation, through its wholly-owned subsidiaries, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology. This expanded polystyrene (EPS) rigid insulation is used in a wide variety of residential and commercial construction projects across North America. It was founded in 1968 as Plasti-Fab Ltd, now a subsidiary of PFB. Directors and officers own 57% of the issued and outstanding common shares as of December 31, 2008. Its web site is See my spreadsheet at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at

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